Zheshang Securities: A-shares may benefit from increased risk appetite, with a style that leans more towards small-cap growth.

Jin Shi Data, December 10th: Zhejiang Securities Research Report pointed out that the current inflation level is at the early stage of bottoming out and rebounding, and there is a large space for elastic recovery of effective demand. It is expected that the monetary policy still has quantitative easing space such as reserve requirement ratio reduction and interest rate reduction. In terms of major asset classes, A-shares may benefit from the rise in risk appetite, and the style is more inclined to small-cap growth. The elasticity of technology stock valuation improvement may be relatively large. It is recommended to follow high-elasticity zones such as the Growth Enterprise Market, the Science and Technology Innovation 50, and the BeiZheng 50. In the fixed income field, the current risk-free interest rate level has gradually approached the new equilibrium level. It is expected that the 10-year treasury bond yield will generally show a volatile trend in the future. The long-term interest rate is difficult to rise, and the credit spread is expected to narrow. Short-to-medium-term sinking creditworthy regions’ urban investment bonds may be the main direction of allocation.